Arkansas law, specifically A.C.A. § 26-26-1902(a), of 2023, mandates that each county is required to appraise all real estate at its current market value every four (4) years to reflect current market conditions. Our next reappraisal is scheduled for 2024, and then again in 2028. In the upcoming county-wide reappraisal, every real estate parcel will be valued as of January 1, 2024.
The Assessor estimates the value of your property by first examining and collecting information on the physical characteristics of the property. Physical characteristics can include, among others, the size of the land (square feet or acres) and building improvements (square feet); quality of construction, whether or not the improvements include a garage, the number of bathrooms, and the nature of amenities such as swimming pools and fireplaces. Location also is a key characteristic affecting value. These characteristics are then used for direct comparison to similar properties in your defined neighborhood or market area, which will produce a value indication by the sales comparison approach to value, along with current market conditions.
Cost data can also be analyzed to help estimate a value indication by means of a depreciated cost estimate. For some properties such as income-generating properties, the Assessor estimates the amount of income the property is capable of generating. Using a mass appraisal system, the Assessor analyzes this collected data to arrive at a final estimate of value.
A property's value can change for many reasons, including a change in the property's physical characteristics, or a change in the use of the property. However, the most frequent cause is a result of current market conditions. With all of the new development, explosive population growth, and tremendous demand for property in Benton County, many property values are on the rise. The good news is this means the investment in your real estate has grown. However, it's important to remember that although every parcel will be reappraised, not all property values will automatically change. The appraised value is market derived and properties located in appreciating market areas and/or neighborhoods may go up in appraised value, while other properties may stay at the same value and some may even decline in value, depending on what the market data indicates for the specific neighborhood or market area.
How will a change in my property value affect my real estate tax?
Just because your property value has gone up doesn't necessarily mean your real estate tax will. Arkansas Amendment 79, also referred to as Property Tax Relief, protects your property from large and dramatic value increases in the real estate market by putting a limit on how much your taxable assessed value can go up each year: a maximum of 5% for your principal residence and 10% for commercial/investment or residential property that is not your principal residence.
So even if the appraised or market value of your home has doubled since the last value change in 2021, your taxable assessed value can only increase by a maximum of 5%, which will limit the increase in your property tax.
Plus, if you've qualified for the age 65+ or disabled freeze, your taxable assessed value is frozen and won't increase at all, provided you've made no significant changes to your property.
Please note that Arkansas law, specifically A.C.A. § 26-26-1123(a), states that “when a person sells his or her real property, the county assessor shall assess the real property at twenty percent (20%) of the appraised value at the next assessment date after the date of the transfer of title to the real property”.
For example: if a property sells and transfers an ownership interest on August 1, 2023, the assessed value would then go to 20% of the appraised or market value as of January 1, 2024. This statutory requirement would then supersede the Amendment 79 limitation on the maximum assessed value increase.
Additionally, if your primary residence is in Benton County you may be eligible for a tax credit of up to $500 regardless of age or financial status. Once the tax credit has been applied for and approved, it will stay on the property as long as it remains your primary residence. If you are turning 65, or have become 100% disabled, it will be necessary to complete a new application to determine if you qualify for a freeze on your taxable value. To request an application please send an email to hmst@bentoncountyar.gov, or call our office at (479) 271-1037.
Why are property taxes necessary and how is my property tax dollar allocated?
Your property taxes are reinvested in your community. They fund our schools, city and county government, roads, libraries, and emergency services, which all help maintain your property's value.
If you do not agree with the assessor's appraised value of your property, you have the right to appeal that value to the Benton County Board of Equalization (BOE). It is important to note, an assessment appeal is not a complaint about higher taxes. It is an attempt to demonstrate that your property's appraised market value is either inaccurate or unfair. You will not win an appeal because you think your taxes are too high. This is an issue you must take up with the individual Taxing Authorities (School Districts, Municipal and County Governments).
The Board of Equalization is an independent and autonomous body consisting of nine (9) Benton County property owners. The BOE meets each year beginning August 1st and no later than October 1st. Property owners may schedule an appointment for a formal hearing beginning the third Monday in July (July 15, 2024) and no later than the third Monday in August (August 19, 2024).
The first step in the appeal process is an informal meeting with an appraiser from the assessor’s office. (often times this informal review is handled by telephone).
The purpose of the informal review, which is not yet a formal appeal, should be:
The appraiser conducting the meeting will review your property record card with you and go over any information you have gathered. The appraiser may not commit to a change in value at this meeting, even though you may have uncovered an error or the assessment appears to be inequitable. The decision about a value change may have to be made by someone else and communicated to you in writing. View the assessor's office as an ally, not an adversary.
If you are not satisfied with the results of your informal review, you have several more opportunities. The first level of formal appeal is to the Benton County Board of Equalization. Your appeal is more likely to be successful if you provide or present evidence that comparable properties in the same neighborhood are assessed for less than yours. Copies of property record cards on any comparable properties, with records of their estimated market value and sale prices, are your best evidence. Note any differences between your property and the comparable sales and be prepared to point out these differences. A recent appraisal of your own property can be good evidence of its current market value. Again, the Board of Equalization is interested in and can make a decision only on the fairness and accuracy of the value placed on your property; not on whether your taxes are too high.
